Blackstone-backed Aadhar Housing Finance’s Rs 3,000-cr IPO to open on May 8

Aadhar Housing Finance Ltd, which is backed by private equity major Blackstone, is set to launch its ₹3,000-crore initial public offering (IPO) on May 8.

The initial share-sale will conclude on May 10 and the bidding for anchor investors will open for a day on May 7, according to the Red Herring Prospectus (RHP).

The IPO is a combination of a fresh issue of equity shares worth ₹1,000 crore and an offer-for-sale (OFS) of ₹2,000 crore by promoter BCP Topco VII Pte Ltd, an affiliate of Blackstone Group Inc.

Currently, BCP Topco holds a 98.72 per cent stake in Aadhar Housing Finance and ICICI Bank owns 1.18 per cent stake.

The company plans to utilise ₹750 crore of the fresh issue proceeds to meet future capital requirements towards onward lending and a portion will also be used for general corporate purposes.

Earlier this month, Aadhar Housing Finance received SEBI’s go-ahead to float the IPO.

Aadhar Housing Finance offers a range of mortgage-related loan products, including loans for residential property purchase and construction; home improvement and extension loans; and loans for commercial property construction and acquisition.

The company is an HFC focused on the low-income housing segment, serving economically weaker and low-to-middle income customers, who require small ticket mortgage loans.

It has a network of 471 branches, including 91 sales offices, as of September 30, 2023. The company benefits from the resources, relationships and expertise of Blackstone, one of the world’s leading investment firms.

ICICI Securities, Citigroup Global Markets India Pvt Ltd, Kotak Mahindra Capital Company Ltd, Nomura Financial Advisory and Securities (India) Pvt Ltd and SBI Capital Markets are the book-running lead managers to the issue.